New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-10-19
oLoSIyG PRIOR, OF BOST0y STOCKS
Boston Oct. IS. isI
Yaatar,lav. To-day.
TUESDAY, oct. 1872. "

TUESDAY, oct IS-P' VI
more railroads to-day came in with reports or
earnings the second week in October They all sho"
large gaus the large business OF last year. Even ST.
Paul and Northern Pacific. which for several weeks
have been reporting losscs from the corresponding
weeks $50, because of the late hrashing Of wheat
their lines, gains the phenomenal earnings
Of last year. Yet the Chicago bureaus, which were
established last March to furnish Wall street with man
ufactlred OF value. to-day kept up the railway
wars" and the slashing OF rates. If farmers
could ship their product to market at
rates which this continued reduction, as
announced by these valuable CHICAGO sources OF
information last May would indicate the present
he, they would be receiving from the ra
ways something like 10 cents bushel on their ship
ments of wheat and corn an Inducement for their
patronage.
The nominal values OF stocks have declined heavily,
the bears have sold something like l,0O0Ooo
shares which have existence except in contracts.
There has been unprecedented imitation OF phanton
shares The contraction to follow is inevitable; the
liquidation, the evening mp must be made IL Is
singular that the operations are so little understood
When party sells 10000 shares %, any stock snort ne
creates 10000 additional shares IN the STOCK Ioui
market. Suppose A. sells 10000 Lake shore to b. ~ Is
short and b. is long Of 10000 stock which does not
exist nut b. can loan to A. 10000 shares; the price may
rise fall but when b. sells 1000 shares 10 some party
desires take the stock up pay for II ana put IL
in his box, t. has only 5000 shares TO loan The CON
nuity of circuit is broRen aud the stock becomes
That is the situation Of the stock market now
The slna speculative buyers Of short stocks have
made sales when have fallen into investors hands
and their loanlng abilities are reduced by Just mat
amount Hence the growing scarcity Of stocks The
idea that there Is present speculative lookup OF
stock. is absurd. There no bull Spectators able TO
do II.
Tie values stocks have declined but not one OF the
predictions which have been alleged as cause ior
decline has fulfilled. The Interstate Commerce
law has proved blessing TO the railways; the savings
in passes amounts almost to respect
able dividend There has been no tight money, except
such As came from scare the part OF bank presi-
dents, who believed that stock spectators OF mish-
room growth knew more about the future OF finance
than they had Learned in thirty years experience. and
therefore locked NJ in their vaults reserves ranging
from 80 to 30 per cent. The railroad earnings 80 not
decline. but they Increase when it would have been
amo, foolish to expect any Increase last years large
returns. Men who buy stock, and pay for them never
need T. qudate sellers OF stocks which they do not
own at period must hqudatc or enter the
court OF bankruptcy.
Tolay's stock market nothing more nor less than
fight between enlisted on tho short side an cur
rent events II there +, am or.lnized bail speculative
party in market proportions are 40 small that no
an H. Looking for wcas spots was the basis OF
operation, on the part OF active sIeculaiors. Ihey
founl one ~ Northern PJcc preferred and slammed It's
price down from l} Il to II b, only to see 1t
,crcuc'y bob up" TO l3 without an effort Missouri
Pacific they sold down from 49, 1t 70 SG 3 !, aud 1t
closed at ~ re- ~ -. Ia Philadelphia and Reading a
fierce battle fought. bur the nsntny was all on one
eide after opening tt SO 81 AMI selling 70 81 - an
opportunity wa4 found mark Is price down 10 go:
Win very dpil movement II rose 70 ana cloS"l az
80 = Tie improvement IN TIE e"ucrai market vs.
sharply contested ar every point; stu 1t did make
uat.lle calus and closed strong ~ near to the be,
figure OF the day.
Government bonds dull and firm at unchanged
quotations as follows: